X

Cement Scarcity Hits Namibia

The Namibia, government is trying to attract cement companies into the country, in response to the growing demand from the housing sector. Steve Motinga, director of indusrial development in the ministry of trade and industry, hinted. At present, the country consumes 350,000 tonnes of cement, all of which is imported from South African. Motinga said that cement from South Africa was fast becoming scare due to construction projects in readiness for 2010 FIFA World Cup. He said three companies had so far responded to the appeal.” We want them to produce for the local market and also target Angola. The Democratic Republic of the Congo and Zambia, ” Motinga.

The director said most cement companies willing to invest in Namibia usually demanded infant industry protection.” We won’t give them that because we want everybody to have the same chance,” he said, adding that another demand from it would buy the cement. He believes competition will drive down the prices of cement as withnessed two years ago when Cheetah Cement started importing cement from Brazil and the prices dropped to less than 30 Namibian dollar per bag. However this was short-lived as Cheetah Cement later accused Holcim Cement of dumping to push it out of the market.” We don’t have a Competition Commission, so we can’t prove the dumping accusations,” he said.

Motinga disclosed that three companies had made presentations to the ministry among which is the German-based Schwenk Pty Limited, already planning to open a cement factory called Ohorongo Cement between the towns of Tsumeb and Otavi in northern Namibia.

 

Hanson Okoh:
Related Post